31st Oct 2019 12:03
(Alliance News) - Pennant International Group PLC said Thursday it secured a "major" GBP3.4 million multi-year contract to develop a helicopter maintenance training aid, whilst it also reported progress in Qatar.
Shares in the technical training equipment firm were 13% higher at 85.50 pence in London on Thursday.
The GBP3.4 million contract is with an unnamed original equipment manufacturer and will see Pennant design and build a full-size helicopter maintenance training aid to enable training on anti-surface weapons systems for UK military personnel.
In 2018, Cheltenham-based Pennant generated GBP3.2 million in pretax profit on revenue of GBP21.1 million.
The contract will be delivered on an engineered-to-order programme, with revenue booked as a percentage of cost completed basis. The programme is expected to run across 2020 and 2021, with final acceptance of the aid in the final quarter of 2021.
In Qatar, Pennant confirmed its four integrated avionic maintenance trainer have now been approved. Consequently, revenue and profits associated with these aids will begin to be recognised in 2019.
Two further products in Qatar are on schedule to be accepted in December.
"After a challenging period, it is great to see the hard work of Pennant's staff pay off, with products being successfully completed on schedule and on budget for the Qatar programme, plus the conversion of one of a number of key opportunities in our substantial single-source pipeline into a valuable contract award", Chief Executive Officer Phil Walker said.
By Ahren Lester; [email protected]
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